Tesla Model 3 vs. The World

Tesla Model 3

JUL 21 2017 BY EVANNEX 28

The Tesla Model 3, with its mass market pricing will help accelerate the company’s face-off with fossil fuel powered Big Auto (Image: Mediakix*)

TESLA MODEL 3 IS READY TO TAKE ON THE WORLD [INFOGRAPHIC]

The Tesla Model 3 is about to change everything. Bloomberg reports, “It’s finally here: The Model 3, Tesla’s $35,000 electric gamechanger. A single black Model 3 rolled off the production line Friday with a serial number all its own, kicking off a company-defining six months. The car will belong to Elon Musk, Tesla’s CEO and co-founder… Tesla has already taken in roughly half a billion dollars in Model 3 deposits, at $1,000 apiece, and its proposed ramp-up schedule would have it rivaling well-established U.S. market peers like BMW and Mercedes by year’s end.”

The production ramp will start slowly.

“Tesla plans to hand over the keys to 30 cars at a launch celebration on July 28. It then envisions building 100 cars—less than three a day—for the month of August, according to a series of Twitter posts by Musk last week. September will bring another 1,500 cars, and the ramp will build to a rate of 20,000 cars a month by December, Musk said. It’s an aggressive schedule that will more than double Tesla’s total production rate in six months, and then quintuple it by the end of next year.”

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Matt Pressman.

Tesla Model 3

Tesla Model 3 SN 1

How big an impact will this make in the auto industry?

“If Tesla achieves all of Musk’s targets, it will build more battery-powered cars next year than all of the world’s automakers combined in 2016 (we assume Bloomberg isn’t counting China as part of the “world”). U.S. sales under Musk’s 2018 targets would significantly outpace the BMW 3 Series and the Mercedes C-Class, the best-selling small luxury cars in the country.”

Above: A look at Tesla Model 3 SN1 (Youtube: TehBestGamer505)

Nevertheless, challenges lie ahead. “The only thing standing between Tesla and being the world’s first mass-market electric carmaker is proving it can build, deliver, and service enormous numbers of these vehicles.” To allay concerns regarding Tesla’s ability to service so many new Model 3s, the company posted a new video (see below) to announce 100 new service centers, 350 additional service vans, and 1,400 new technicians.

Above: Tesla showcases its unique approach to service (Youtube: Tesla)

So now that we’ve finally laid eyes on the production Model 3, how is it different from Tesla’s pre-alpha prototype? According to Electrek, “The most obvious change is the front end which appears sharper and not as flat as what was shown on the pre-alpha prototypes just over a year ago… [and] the rear bumper also appears to extend longer on the production unit than on the pre-alpha. Those changes appear to be aimed at better aerodynamic performance, which would make sense since CEO Elon Musk said that they were aiming to achieve a segment-leading drag coefficient of 0.21.”

Regardless of its good looks, Model 3 will surely reach a younger audience due to its lower price point. And, it’s also attracting younger investors. According to CNBC, “As goes Silicon Valley, so goes millennials’ money.” It turns out that Tesla is one of Millennials’ top five investments — placing #4 along with Apple, Facebook, Amazon, and Netflix according to TD Ameritrade. And, in the past six months, Tesla’s stock (although volatile) has rocketed upwards on the promise of the company’s new Model 3. For a deeper look at how the Model 3 has impacted the company, the auto industry, and Wall Street — check out the infographic from Mediakix* below.

Infographic

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*Infographic: Mediakix; Editor’s note: Tesla [NASDAQ: TSLA] stock price changes daily and has experienced market volatility (to say the least) over the past few weeks/months. Therefore, data in this infographic reflects prior stock price based on past performance. Musk has also updated his Model 3 production forecast to include a 20,000 car run rate in December. In addition, although the infographic shows $0 spent on advertising, Tesla has since begun to spend only $6/car on advertising.

*Editor’s Note (IEV): EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers. Our thanks go out to EVANNEX, Check out the site here.

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28 Comments on "Tesla Model 3 vs. The World"

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Peers like BMW and Mercedes? What is luxury about this car?

Performance and tech.
For the comfort and interior quality, it remains to be seen…

I am predicting that MB and VW will not be there in 10 years time.
Here is why.

Kuwait owns 6.8% of Mercedes

https://www.daimler.com/investors/share/shareholder-structure/

Qatar owns 13% of the preferred shares. Do you thing they will vote for electrification?

https://en.wikipedia.org/wiki/Qatar_Investment_Authority#Volkswagen

“By holding 17% of Volkswagen’s ordinary stock and 13% of preferred shares, Qatar’s sovereign-wealth fund is the third largest investor shareholder in the firm.[37][38]”

Actually, yes, the Arab States are moving faster into Solar than any US oil company. Your premise is wrong. They’re well aware oil has a short timeline.

Arab states are building solar so that they reduce oil usage for electricity generation. This is so they can sell more oil on the market to generate cash. They still want the rest of the world to buy the oil.

Then they have RESERVE issues.
And if Solar is cheaper than pumped oil in your back yard, then oil is already DEAD.

Because the rest of the world has to pay Shipping from the Arab states.

I agree with MX.

Many Middle East countries see the writing on the wall and they know they have to diversify their wealth and economies away from fossil fuels if they want to remain in power.

mx said:

“Actually, yes, the Arab States are moving faster into Solar than any US oil company. Your premise is wrong. They’re well aware oil has a short timeline.”

Entirely correct. The Arab oil sheiks are far better at diversification and planning for the future than American oil companies. The Arabs do understand that eventually the oil will run low, and are planning for that day!

If legacy auto makers act like Kodak, and refuse to jump into the EV revolution until it’s far too late to compete or catch up, then it certainly won’t be because of Arab investors.

I’d venture the Werks Counsel, Stephan Weil’s board seat, and the consequentially higher hat tip to ~600k labor (concentrated highest in engine building w/in Germany), is having greater effect on VW’s slowness to embrace EV. At least it is somewhere on…the list.

A battery in the floor, and an electric motor get ride of 90% of road noise, that’s a SIGNIFICANT Difference, that MB ICE cannot reproduce.

You just need to Drive a Tesla, and you’ll determine your own “definition” of luxury.

Tesla is a real threat.

I’m driving an i3 and I haven’t heard mid range music parts in a car, in Never. There’s a significant difference. Tesla will below them away.

No frequent oil changes or dealing with filthy gas stations seems luxury to me.

“What is luxury about this car?”

Well, let’s see…

1. Silky-smooth ride

2. Whisper-quiet ride

3. Instant response to accelerator

4. Superior driver assist features

5. Giant infotainment screen with an amazing number of functions

6. Integration of features into an intuitive whole; everything works well together

All these things are far better than you’d get in even most top-end luxury cars.

In fact, the only places where Tesla’s cars do not measure up to traditional “luxury” cars are in the interior trim and the responsiveness of the steering. I find it very strange indeed that some people single out the interior trim and say because Tesla doesn’t match the more expensive models of Mercedes-Benz or BMW in that one respect, that alone knocks Tesla out of the luxury car category.

Well, I guess they are entitled to their opinion. I certainly don’t share it. I took a “test ride” in a Model S, and I was certainly impressed with its luxury and comfort. I certainly wish I could afford one!

What is luxury about Ferrari??

184″ wheelbase?

Uh, think not.

Nissan MKT cap went from 42B in Q1 2015 to 40B in Q1 2017, reduction of about 5%. It seems MKT cap change is roughly correlated to amount of plug-in vehicles sold (Ford sold lots of PH).

This will be interesting to watch.
Things Tesla needs to achieve to dominate the premium segment:
1) Once other premium car vendors have EVs, match them on interior quality while leading them on tech.
2) Scale of service as mentioned in the article
3) At least matching BMW on reliability and durability. Lexus would be better.

Strengths Tesla has:
1) Gigafactory
2) SC network
3) Ability to start with a clean sheet of paper. If they really can pull off the manufacturing simplification they have been talking about for the Y that would be a yuuuge advantage. This alone could allow them to dominate.
4) Brand is desirable right now.

….(we assume Bloomberg isn’t counting China as part of the “world”)….

Perhaps counting BEVs only, not PHEVs?

496k BEVs sold globally in 2016.

I guess, just looking at this vehicle tells you all you need to know. ALL the other manufacturers did NOT build a Standard Car that can hold 5 people. Even the Volt, with rear seat headroom issues.

And this is why Tesla is going to win this. Superior Management Skills, and the advantage of the innovator. To not have to worry about it’s current product line.

BMW has built a FANTASTIC i3/i3REX solution, and yet it’s less than 2% of BMW sales, because it Does Not compete with the 3 series. A Failure of Management.

Good Managers need Balls.
Marble balls in their pockets, to remember what good management is. It’s Courage.

For Example: We have the iPad today because Steve Jobs made the tough decision to allow for the possibility to would cannibalize Computer sales, and it Did.
Because if he didn’t move first Someone Else Would.

TESLA.

I guess this comes down to STOCK OPTIONS for CEO’s.
The more they get paid in OPTIONS the WORSE their management. Ultra-Conservative.

Stock Options should be tied to New Market Performance, if you want to compete with Tesla.

Keep these managers worried ONLY about the Stock Price and they’ll All Go Bankrupt.

This is called the “Innovator’s Dilemma” in business theory.

“BMW has built a FANTASTIC i3/i3REX solution, and yet it’s less than 2% of BMW sales, because it Does Not compete with the 3 series. A Failure of Management.”

Hmmm, I would think it far more likely that the inability of the i3 to compete with BMW’s best-selling 3 Series is exactly what Management intended.

Why would any legacy auto maker want to sell more PEVs (Plug-in EVs), with their small profit margin, than gasmobiles, with their much larger profit margin?

Legacy auto makers aren’t ignoring the EV revolution as much as possible because they are evil. They are ignoring it because they make more money selling what they’ve been making for over a century.

The Model 3 changes NOTHING if the rollout and subsequent support is botched, which given Tesla’s history is entirely possible.

Hello Stanley,

Have you noticed through all the whining and complaining, Tesla is still growing like crazy. Do you realize Tesla will keep building cars, no matter what you say or do.

Trolls and haters constantly scorn them.
But Tesla is still building cars and nothing seems to stop them.

All your denouncments are having no effect.
Somewhere in this world someone is reserving a Model 3 right now.

Tesla keeps building the Model S, this trolling thing’s not working.

Tesla keeps building the Model X, and every day owners have falcon doors that are working.

At this very moment, Tesla is still building the Model 3, like it will never go out of style. And there is nothing you can say or do to stop it.

You don’t need to write a manifesto because someone points out a possible risk factor.

It is actually a tongue and cheek reference to a song…

When I bought my Chevy Spark EV four years ago I honestly thought I would only like it because of the emotional high caused by not buying gas and not contributing to the smog in L.A. Actually, even though its software sucks and it is butt ugly, it is quick and quiet; I love it. But, I put a deposit on a Model 3 early in the morning of March 31 last year, and I expect it to be vastly better than my Spark.

If Tesla manages to execute a good launch and ramp up of the Model 3, and the legacy brands continue to sit on their hands while the world changes, Tesla could end up making a lot of money. No one can predict how this will all shake out but, absolutely, there is a possibility that Tesla could be one of the largest auto manufacturers in the world.